Two hazardous environment

Two hazardous environment

Two hazardous environmental facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows are as follows:First cost $550,000         $300,000Annual maintenance & operating cost   $30,000          $15,000Annual benefits   $140,000         $95,000Consider an interest rate of 12% per year. Using the annual cash flow analysis, which alternative should be selected?

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